NETFLIX stock: overvalued or not?

12:44 20.01.2020

Something is coming

Recently, Netflix stock price has been showing good performance. Indeed, it rose by more than 30% since the beginning of the previous quarter to the current $340. However, the consolidation it is in now shows that investors are waiting for more information to decide whether this share is overvalued or not. Will it keep rising?

Earnings will show

On Tuesday, January 21, Netflix will provide another earnings report, referring to the last quarter of 2019. It will define the mid-term movement of the price, pushing it down to $335 and below or up to $345 and higher. The Q3 report by Netflix reveals that the company managers expect Q4 to show a 30% increase in consolidated revenue year over year. The overall forecast by the corporation is almost the same as the performance in 2018.

Source: www.netflixinvestor.com

In the meantime, with the expected increase in the revenue up to $5.45 billion compared to Q3 figure just slightly above $5 billion, analysts predict a significant drop in the earnings per share down to $0.52.

Source: www.investing.com

Ready

In the Q3 report, it was announced that the company performance will be presented in a more detailed way, broken down into regions. For this reason, be ready that the nature of the report will be not so unambiguous as you would like to see. A certain degree of interpretation may be required to see where it will drive the share price.

Set

To set things into perspective, especially from the competition point of view, please see our previous article about Netflix and Disney – that will help you better understand investors and hence where their impression of the report will push the price.

Go

So watch out for the report on Tuesday, 13:00 MT (11:00 GMT).

And just in case you haven't prepared, here is what you need to do to trade stock.